GVR Report cover Artificial Intelligence In Healthcare Market Size, Share & Trends Report

Artificial Intelligence In Healthcare Market Size, Share & Trends Analysis Report By Component (Software Solutions, Hardware, Service), By Application (Robot Assisted Surgery, Connected Machines, Clinical Trials), And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-3-68038-951-7
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 150

Report Overview

The global artificial intelligence in healthcare market size was valued at USD 6.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 41.8% from 2021 to 2028. The increase in the inflow of patient health-related digital data, growing pressure for cutting down healthcare spending, and rising demand for personalized medicine are some of the key factors aiding revenue growth in the market. The increase in the prevalence of chronic diseases in an aging population is another key factor that has raised the need to understand and diagnose diseases in their early stages. With deep learning technologies, it would become easy to predict diseases based on their historic health data. Moreover, content analytics, Natural Language Processing (NLP) tools, Artificial Intelligence (AI) can help in the patient’s speedy diagnosis of the patient’s condition.

U.S. AI in healthcare market size, by component, 2016 - 2028 (USD Million)

Moreover, AI technology has played a pivotal role in the ongoing COVID-19 pandemic and positively influenced related markets. It is being implemented in rapid detection and diagnosis of the virus strains and in managing the outbreak through personalized information. AI algorithms can be trained through chest CT images, exposure history, symptoms, and laboratory findings to rapidly diagnose COVID-19 positive patients. In an NCBI study in April 2020, it was found that an AI system detected 17 out of 25 COVID-19 positive patients based on normal CT images, whereas professionals diagnosed all patients as COVID-19 negative. Therefore, AI-based diagnosis can be used to accurately detect a disease even before evident symptoms appear. These systems can be trained to analyze images and patterns to create algorithms to aid professionals in diagnosing a disease accurately and quickly, thereby increasing the adoption of artificial intelligence technology in the healthcare space.

Additionally, the ongoing COVID-19 pandemic, coupled with growing government initiatives, increasing mergers and acquisitions, portfolio expansion, and collaborations to promote the implementation of AI in healthcare, is further accelerating its adoption, thereby contributing to market growth. For instance, in August 2020, Digital Diagnostics Inc., formerly known as IDx, acquired 3Derm Systems Inc. The acquisition aimed at including telemedicine capabilities for dermatology, 3DermTriage, and to prepare its autonomous AI skin cancer diagnostic system, 3DermSpot, for FDA authorization.

AI technology is expected to experience a separate growth trajectory owing to this pandemic with surged market growth in few artificial intelligence applications pertaining to the healthcare sector. Key participants are also expanding their portfolio to meet the demands in the current pandemic situation, which is also one factor depicting the surge in artificial intelligence penetration in healthcare applications. For instance, Qventus installed AI-based patient flow automation systems to help the healthcare facilities during this pandemic situation. The solution includes staying length optimization, ICU and med-surge capacity creation, COVID scenario planner, and critical resource control. Also, in May 2020, MIT - IBM Watson, AI Lab pushed artificial intelligence-based technology by funding 10 research projects that are aimed at addressing the economic and health consequences of the COVID pandemics.

Furthermore, the companies are increasingly focusing on expanding their geographical reach and introducing newer, innovative solutions through various strategies, including partnerships, product launches, and collaborations, to support the end-users in overcoming the shortage of radiologists, deliver value-based care, combat the COVID-19 pandemic by early disease detection and diagnosis, and maintain a competitive edge in the market. For instance, in June 2020, GE Healthcare launched Thoracic Care Suite to detect chest X-Ray abnormalities, such as pneumonia and tuberculosis, caused by COVID-19 as well as support clinicians and health systems to ensure quick diagnosis and effective treatment of patients. In April 2020, Microsoft investment USD 20 million to help in COVID-19 research with the use of artificial intelligence technology and data sciences, mainly focusing on hospital resources, diagnostics, and other critical areas.

Component Insights

In 2020, the software solutions segment dominated the market for AI in healthcare and accounted for the largest revenue share of 40.6%. An increase in the adoption of AI software solutions among healthcare payers and providers is one of the key factors driving the AI software segment. In September 2019, GE Healthcare signed an MoU of the strategic partnership with five local Chinese software development companies-12Sigma Technologies, Shukun Technology, Biomind, YITU Technology, and Yizhun Medical AI for developing applications for its Edison AI platform. These strategic partners are expected to provide software products of high maturity, allowing the smooth digital transformation of GE Healthcare. Moreover, the penetration of AI solutions in multiple healthcare applications is also driving the market. For instance, in terms of teleradiology, the emergence of artificial intelligence technology has neglected the issue regarding the lack of onsite radiologists, thereby positively impacting the segment growth.

However, the software segment is further expected to be the fastest-growing segment owing to the growing number of strategic initiatives in terms of M&A, partnerships for new product development, and seed investments are one of the key indicators that depict the growth potential in the market. Key players in the software segment include Microsoft, GE Healthcare, Phillips Healthcare, Biosymetrics, and TriNetX, Inc.

Application Insights

By application, the clinical trials segment dominated the AI in healthcare market and accounted for the largest revenue share of 24.5% in 2020. With an increase in the number of patent expirations, demand for faster clinical trials has grown rapidly to cater to the need for new drug development. Although artificial intelligence technology has not yet made any significant impact on clinical trials; however, AI-based models are aiding in trial designing. AI-based monitoring systems focus on improving study adherence by decreasing dropout rates, whereas AI-based techniques are employed for patient recruitment. One such AI monitoring system is Deep6AI, which is specifically designed to shortlist more patients for clinical trials within minutes, thus providing rapid life-saving cures to people. Moreover, the mean Return on Investment (ROI) on new drug development fell from 10.1% in 2010 to 1.9% in 2018. However, the implementation of AI technologies in clinical trials is expected to boost the ROI, which will encourage investment in this sector.

Global AI in healthcare market share, by application, 2020 (%)

However, though the penetration of AI technology in the area of virtual assistants was not the largest as of 2020, the segment is expected to witness significant growth in the market for AI in healthcare during the forecast years. This is owing to the lack of skilled workers. The increase in penetration of smartphones and AI technologies among patients and professionals is boosting the adoption of virtual assistants. In addition, robot-assisted surgeries were the most promising segment in the market for AI in healthcare as of 2020. This is majorly owing to the fact that surgical robot manufacturers are entering into multiple strategic partnerships with data analytics companies and artificial intelligence technology providers. For instance, in February 2020, Medtronic acquired Digital Surgery for enhancing its application in operating rooms.

Regional Insights

North America dominated the market for AI in healthcare and accounted for the largest revenue share of 58.9% in 2020. Factors that are driving the market in the region are higher adoption of AI technologies, growing licensing and partnerships, and favorable government initiatives. For instance, In December 2019, MedEye announced the signing of a partnership deal with Synergy Medical (SynMed)-a Canada-based company-to introduce its AI-powered medication verification technology to the long-term care market in North America. Moreover, factors such as the local presence of major market players, the rising geriatric population, the increasing incidence of health-related disorders, and growing awareness about the use of AI in healthcare have positively impacted the market in the region.

However, in Asia Pacific, the market for AI in healthcare is expected to grow fast over the forecast period. This growth is seen through development and innovations in entrepreneurship startups established in Asia Pacific countries. Rise in the number of government initiatives encouraging healthcare providers and other healthcare organizations to adopt AI-based technologies and increasing investments by various private companies and nonprofit organizations to improve clinical outcomes, achieve better information exchange, and cost reductions are some of the major factors anticipated to drive the market for AI in healthcare in the region during the forecast period.

Key Companies & Market Share Insights

Service differentiation, increasing investments in R&D, and collaborations with key industry participants are the key strategies adopted by key competitors to gain a competitive edge in the industry. Moreover, rising investments in AI by startups are also propelling the market growth. For instance, Analytics 4 life, a Toronto-based startup, raised around USD 29.0 million to develop a new medical imaging technology, using AI algorithms for cardiac diagnostics. Some of the prominent players in the artificial intelligence in healthcare market include:

  • IBM Corporation

  • NVIDIA Corporation

  • Nuance Communications, Inc.

  • Microsoft

  • Intel Corporation

  • DeepMind Technologies Limited

Artificial Intelligence In Healthcare Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 10.4 billion

Revenue forecast in 2028

USD 120.2 billion

Growth Rate

CAGR of 41.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; Spain; France; Italy; Russia; China; Japan; India; South Korea; Australia; Singapore; Brazil; Mexico; Argentina; Saudi Arabia; South Africa; UAE

Key companies profiled

Nuance Communications, Inc.; IBM Corporation; Microsoft; NVIDIA Corporation; Intel Corporation; DeepMind Technologies Limited

Customization scope

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the global artificial intelligence in healthcare market report on the basis of component, application, and region:

  • Component Outlook (Revenue, USD Million, 2016 - 2028)

    • Software Solutions

    • Hardware

    • Services

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • Robot Assisted Surgery

    • Virtual Assistants

    • Administrative Workflow Assistants

    • Connected Machines

    • Diagnosis

    • Clinical Trials

    • Fraud Detection

    • Cybersecurity

    • Dosage Error Reduction

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • The U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Spain

      • Italy

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

      • Singapore

      • South Korea

    • Latin America

      • Brazil

      • Mexico

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • South Africa

      • UAE

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